Google Calculates Benefits For Direct-Response Ads

Google TV Ads

Under a new feature, the Google TV Ads platform can now automatically provide an advertiser with a cost-benefit analysis for a direct-response ad. The system provides a spreadsheet that breaks down the cost-per-call an advertiser receives per spot.

The data is generated for ads that carry a Google-provided toll-free number. For example, a particular tagged spot on MSNBC might carry a total cost of about $80. If Google tracks six calls coming in the 15 minutes after air, the cost-per-call is about $13.

The data provides a guide for users of the auction-based TV Ads system to determine which networks, dayparts and programming might yield the better response rates. Ads that run on the Google system can air in homes served by Dish Network, as well as on some national cable networks.

Google is hoping the analysis will generate more interest in TV Ads from small-business owners that have never advertised on TV before -- a principal pitch it has made for the system since its inception.

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Advertisers have been able to do cost-per-call calculations before, but the automated service takes some of the homework out of it.

"For small business owners, just sitting down and doing that math is taking time out of their day, and they'd rather be running their business. That's why we think the automation is a big (advantage)," said Steve Stukenborg, senior product manager at Google TV Ads.

Small-business types that don't have creative can use a Google production system to create ads with toll-free, 866 numbers attached. An advertiser might use multiple numbers, helping track which specific ads lead to the preferable cost-per-call rates.

For larger direct-response advertisers, Google has a partnership with CoreMedia Systems that allows for analytics and comparisons to other media buys.

1 comment about "Google Calculates Benefits For Direct-Response Ads".
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  1. John Grono from GAP Research, February 8, 2010 at 8:03 a.m.

    I wonder if these DRTV advertisers that is a CPM of $13,000. I realise it is not directly comparable to an 'eyeballs' CPM, but still sounds pretty steep.

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